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Farming Basics: How to Take Good Care of Your Farm

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Taking good care of your farm needs careful planning. For you to preserve your farm’s glory for years, if not decades, always make sure you have a regular maintenance schedule. That way you can continually check your farm and make room for improvements.

In order for you to identify where your farm needs improvement, you have to look into its every aspect. From the current situation of your soil or the structural issues that your barn might have, each one is important to keep your farming business up and running.

To help develop your farm maintenance and management skills, here are ways to properly take good care of it.

Always keep your soil healthy

Keeping your soil healthy is very crucial. After all, it’s where your crops grow and create most of your farm produce. Make sure that the fruits and vegetables you plant will grow from a land that’s well-maintained.

Invest in soil testings to check your soil’s current condition. Adding compost and keeping it well-drained can also help you achieve this objective.

Tend the animals

Keep in mind that the animals on your farm require the best care for them to stay healthy. Other than making sure they are well-fed, always provide clean water in order to keep them hydrated.

Have them regularly checked out by your trusted veterinarian. It’s also one way of preventing farm diseases from happening. Besides that, make sure that they also get proper and regular grooming, too.

Starting your farm begins today.

Check the farm buildings

If you have a barn or a shed on your farm, it’s also something you need to look into. During maintenance checks, always be on the lookout for structural issues from your farm.

Once you do, make sure that these concerns are addressed as soon as possible. Your barn, or any other farm buildings you might have, keep farm safe especially from harsh outdoor conditions.

These structures give shelter to your farm animals, your farm equipment, or your produce which is why you need to do your best not to compromise your farm’s safety.

Practice proper waste management

Waste management is important for farms who either raise poultry and other livestock. Maintaining order and cleanliness on your farm is also one way of taking good care of it.

Which is why it’s smart for farmers to consider learning proper waste management on their farm. Not only will it keep your farm clean and in order, it’s environmentally beneficial.

Mind the equipment

The tools and equipment that you have in your farm play a huge role in your farming operations. If these devices fail, it might be counter-productive for you.

As a result, your daily operations can be compromised and production can have delays. To avoid that from happening, always check if your farming equipment needs some repair or an upgrade.

Talk to our lenders today.

Consider improvements or upgrades

All in all, you have to make room for improvements or upgrades. Some systems may not work for you anymore and it may be hard for you to keep up with other farms in your location.

Upgrades, however, need proper financing. It’s especially true when you think your farm currently needs a major boost. Through different farm loan programs under the USDA’s Farm Service Administration, you can apply for a farm loan that will allow you to cover upgrade or improvement expenses.

Secure funding for your farm through us.

Make the Most Out of Your Small Farm with These Creative Ideas

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Starting a small farm can be a challenge. With hard work, patience, and your creativity, you can definitely make some good money out of it.

If you’re still on the fence about how you can turn your small farm into a profitable business, here are a few ideas that might spark your interest.

Offer farm-to-table experiences

There are a lot of people who are interested in having new culinary experiences and this one is something worth trying. If you have a knack for making good food, you can consider offering on-site farm-to-table dining experiences.

Taking fresh produce from your farm to making delectable dishes, there’s no denying that this experience can definitely attract many customers.

Ask our lenders today.

Rent out the barn or an outdoor space

If you have an unused barn on your small farm, why not put it to good use? There are a few ways to make the most out of your barn.

You can consider turning your barn into a small bed and breakfast or you can rent out the space for gatherings and events.

If you have a beautiful outdoor space that can be rented out for different functions, you can do so, too! Outdoor event spaces can be beautiful locations for weddings, engagement parties, and anniversaries.

Organize workshops and events

Do you have your own farm-made goods? You can teach others how to make these products by holding regular workshops.

These workshops will depend on what your farm can offer. You can teach simple farm skills like pest control tips, farm keeping idea. You can also help your clients learn how to make homemade ice cream, jam, and other artisanal food products.

Other than that, you can even organize your own farmer’s market. You can rent out stalls for a period of time where other farmers and agricultural businessmen can sell their own goods for a period of time.

Cater to the crafty ones

You can make and supply raw materials to be used for arts and crafts from your small farm. Make craft items that you can grow or see around your farm.

These can be pinecones, willowy tree branches, or lavender. If you have beautiful foliage on your farm, you can turn that into supplies, too.

Become a chef or a restaurant’s supplier

Other than selling your products in a farmer’s market, you can also offer to become a supplier for chefs and local restaurants near your area.

Not only would you get a good profit out of it, you can also expand your network and connections that would open doors to more possible clients in the future.

Start your farm today.

Get financing for your small farm

Opening and operating a farm will not be possible without a capital Good thing there are financing options available for farmers who are planning to start and operate a small farm.

The USDA’s Farm Service Administration ( FSA) provides financing programs for small farmers through USDA Microloans.

Get assistance from USDA-approved farm lenders to for you to have enough capital to start and operate your small farm.

Finance your farm through our lenders.

LOOK: Here Are Ways to Prepare Your Farm for Winter

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Farmers know very well that they need to prepare their farms before the cold winter season starts. Each farm has their own specific needs in order for it to be able to weather the harshest conditions that these months could bring.

Farmers should not waste time to make the necessary preparations now that winter is coming. In fact, late fall is the best time to prepare your farm for the upcoming season.

It’s important to be responsible enough to take care of you and your family’s source of income and livelihood. Seasons change and these can affect the state of your farm when it happens.

New and experienced farmers know that it’s important to always prepare your farm in order to prevent yourselves from facing any problems on your farm at any time of the year.

Since the season is about to change once again, there shouldn’t be any more time to waste. Now is the time to prepare for everything before fall bids goodbye and to give way for winter. Here are some important tips to prepare your home for winter.

More about farm loans here.

Create a to-do list

You need to make sure that you’ll do a good job in preparing your farm for the winter months. You need to list out everything you need to do and use it as a checklist before you do any actual repairs and improvements to your farm.

The list will be there to make sure you don’t leave anything out once you prepare your farm. Making the list would not take you all day but it’s an important tool to make your preparations successfully.

Prepare the gardens

If you’re keeping a garden on your farm, you should know that you need to always take care the soil that keeps your garden growing. Invest in testing your soil and assess it’s current condition.

From there, you can begin planting your crops for winter harvesting. You can choose to sow cover crops such as winter rye and oats since they help protect the soil during winter.

Gather your tools and other equipment

There are tools and equipment that are vulnerable to harsh winter weather conditions so make sure there are stored somewhere safe.

You need to keep all the tools you might need during winter in one place where it’s accessible. Purchase any tools you might need but so that you will not end up panic buying in the future.

Mind the animals

Always prioritize the welfare of your livestock. You need to make sure their shelters are well ventilated and secure and that their food and water source during winter remain safe and plentiful.

Mind the specific needs of each animal that you’re keeping in your farm. These can either be being up-to-date on their immunizations or making sure their physical well being is well taken cared of.

Ask us your questions here.

Prepare the barn

Another way to help prepare your farm for winter is to secure the barn. Make sure that your barn’s structure is still sturdy enough to brave the winter storms.

Check the doors and windows. Make sure your barn keeps the cold temperature from seeping through cracks. Check the roof. Always make sure that there are no holes or cracks up there, too.

Prioritize your and your family’s well-being

Most importantly, you have to attend to your and your family’s needs for winter. Stock up on winter clothes, food.

Your safety should be your top priority. Taking care of your well-being first will help you prepare your farm better.

Match with a lender today.

Farming Matters: Are You Eligible for a USDA FSA Down Payment Loan?

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The hurdle of down payments is not exclusive to homebuyers. Prospective farm owners and ranchers too don’t have it easy getting a farmland. The USDA Farm Service Agency has a special down payment loan program as an option for eligible borrowers.

Are you eligible for an FSA down payment loan? Find out about its qualifications, requirements and more.

Find a USDA-approved lender here.

Rising Agricultural Land Values

The average farm real estate (buildings and land) in the U.S. was valued $3,080 per acre for 2017, a 2.3% increase from 2016, according to the USDA’s Land Values 2017 Summary as of August 2017.

It was in the Corn Belt region where the most expensive farm real estate was found, valued at $6,260 per acre. On the opposite scale was the Mountain region whose farm per acre value was at $1,130.

On a regional basis, farm real estate values ranged from an 8.7% increase in the Pacific Region to a 1.8% decrease in the North Plains region.

Since 2003, the price per acre of farms in the U.S. has been on the rise. If you want to own a farm, where do you get help in buying one?

Eligibility for FSA Down Payment Loan

If you meet the following requirements, you could qualify for a special down payment loan from the FSA.

First off, participants must be:

  • Beginner farmers and ranchers defined as an individual or an entity who has not operated a ranch or farm, or who has operated a farm for not more than 10 years.
  • Socially disadvantaged farmer or ranchers as those who have been subjected to racial or ethnic prejudice because of their membership in a group. These groups may include women and minority farmers.

Notably, these individuals are eligible for targeted farm funding where this special down payment loan program falls under.

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The down payment loan is structured as a tie-up between public and private lenders whereby FSA provides a guarantee. Take a look at the features/requirements of the down payment loan and the private financing:

  1. A cash down payment of 5% of the purchase price.
  2. A maximum loan amount is $225,000. It must not exceed 45% of the least of (i) the purchase price of the farm, or (ii) its appraised value or (iii) $500,000.
  3. The loan must be repaid in 20 years.
  4. The interest rate on the down payment loan is 4% below the interest rate on direct farm ownership (FO) loans but not lower than 1.5%.
  5. The remaining financing (50%) can be sourced from a private or commercial lender.
  6. The FSA will guarantee up to 95% of the financing and will not require the private lender to pay a guarantee fee.
  7. The loan term of the private financing is 30 years at the minimum. It must not have a balloon payment due within the first 20 years of the loan.</li.

Retiring farmers may also use the loan to facilitate the transfer of farm ownership to future generations.

In sum, these down payment loans are not 100% financing loans. You need a 5% cash down payment and may have to source the remaining 50% of the purchase price.

But with their low interest rates and FSA’s guarantee, down payment loans can be an option for targeted farmers.

You can inquire with your local FSA office or the FSA website about these down payment loans.

Click here to see the latest rates.

USDA Direct vs USDA Guaranteed Farm Loans – Part II

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House

In the first segment of this two-part discussion about USDA Farm Loans, all the basics of the USDA Direct Farm Ownership Loan have been tackled over.

As a quick recap, the USDA Direct Farm Ownership loan:

  • Is directly funded by the USDA through the Farm Service Agency (FSA). Its budget comes from the annual appropriation set by the Congress.
  • Can be used in a variety of ways, including buying new farms and ranches, and expanding existing ones.
  • Has three major types: 1. Regular Financing, 2. Joint Financing, 3. Down Payment Financing
  • These are certain eligibility requirements that an applicant(s) need to meed in order to get the financing they need.

In part 2, we will discuss all the basic knowledge there is to know about the other type of USDA Farm Loan, the USDA Guaranteed Farm Loan.

Its ultimate purpose is still the same as the Direct Farm Loan and that is to provide farmers, new or tenured, the access to credit in order for them to build or purchase new farms or continue and expand their operations.

This farm financing program is made available by the USDA through the FSA.

USDA Guaranteed Farm Loans

Unlike the direct farm loan, the Guaranteed Farm Programs are funded by USDA-approved commercial lenders and banks. The USDA makes sure that the terms are reasonable for both the borrowing farmers and ranchers and the lending party.

By guaranteeing these farm loans, the FSA provides commercial lenders a safe cushion from possible financial loss. The FSA ensures up to 95 percent of the guaranteed farm loan.

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The Four Types of Guaranteed Farm Loans:

  1. Farm Ownership

Basically, this type of guaranteed farm loan can be used to fund the purchase of a new farm or ranch. It can also be used to buy additional acreage for the expansion of an existing farm or ranch.

  1. Farm Operating

This type of loan may finance developments needed to continue and/or improve farm or ranch operations. The money can also be used to purchase, build or renovate service infrastructures and other facilities that are vital to the operation of the said farms and ranches.

  1. Land Contract Guarantee

The purpose of this guaranteed loan is to finance the purchase of a farm on a new land contract with a purchase price of up to $500,000.

These are the two types under this program: the Prompt Payment Guarantee and the Standard Guarantee.

  1. Conservation Loan

This guaranteed loan allows farmers and ranchers who want to implement conservation practices on their land gain access to the necessary credit.

These conservation measures have to be approved by the Natural Resources and Conservation Service ( NRCS). These practices may involved but not necessarily limited to the reduction of soil erosion, improvement of water quality and the promotion of organic and sustainable farming practices.

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How Do You Qualify for a USDA Guaranteed Farm Loan?

  • The applicant(s) must exhibit ability to take legal responsibility for a loan
  • Must be able to show proof of adequate credit history. This will depend on the lender’s requirements.
  • Must not have caused the agency any financial loss by debt forgiveness from April 5, 1996, onwards.  Prior to this specified date, there must be no more than 3 occasions of debt forgiveness. This applies to both FSA direct and guaranteed loan.
  • Must not be delinquent on any Federal debt.
  • Must be the owner-operator or the tenant-operator of a family farm after the closing
  • For Ownership Loan, the producer must own the farm after the loan is closed. For Operating Loan, the producer must be the operator of a family farm after closing.
  • Must meet the citizenship requirements set by the USDA FSA.
  • The applicant must have tried with no luck in obtaining any other financing without FSA guarantee.

What are the Maximum Loan Limits:

For Farm Ownership Loans, Operating Loans and Conservation loans, the FSA can guarantee up to $1,399,000. This maximum loan limit is adjusted for each fiscal year based on inflation. For Land Contract Loans, the loanable amount may not exceed $500,000.

These are some of the basic information about the USDA Guaranteed Farm Loans. You may read more about the Direct Farm Loan Program by clicking here. For more information about each program, you may speak with a USDA-approved lender or visit the USDA website.

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USDA Direct vs USDA Guaranteed Farm Loans – Part I

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Plants

“We keep America’s agriculture growing.”

This line may not be something we are all familiar of but, to many, this is an inspiring statement that they hold dear in their hearts.

The United States Department of Agriculture is a federal executive branch ensuring that our agricultural industry remains robust by developing and executing agriculture-related laws.

Moreover, it provides a myriad of loans which aims to assist eligible individuals to prosper in their respective communities.

There are affordable rural home loans which qualified borrowers may use to purchase or refinance homes located in eligible rural areas. There are also infrastructure and community-facility loans which allow underdeveloped rural neighborhoods build their communities. There are also agricultural loans to help new and veteran farmers start or continue their farming operations.

This only goes to show what great opportunities USDA presents to anyone who is qualified. It opens the doors to progress not only for Rural America but for the nation as a whole.

Here we discuss the two popular farm loans offered by the USDA Farm Service Agency, the USDA Direct Farm Ownership Loan and the Guaranteed Farm Loan Program.

USDA Direct Farm Ownership Loan

A direct farm loan is a financing program where the originator of the loan is the USDA itself through the FSA. The funds come from the annual USDA budget which is set by the Congressional appropriations.

The Direct Farm Ownership Loan can be used in a variety of ways:

  • For the purchase of a new farm or ranch
  • For the expansion an existing acreage
  • For the purchase of easements, or the right to cross or use someone else’s land
  • To pay for down payment on a farm or ranch and loan closing costs
  • To purchase, build or renovate farmhouses, service facilities, and other structures
  • To make improvements which are absolutely necessary to continue farm operations
  • To further develop the conservation and protection of soil and water

These three main type of Direct Farm Ownership Loans:

  1. Regular Financing Loan

The first type is the Regular Financing Loan. This means that all the funds are provided by the FSA. The loan is directly funded by the FSA to provide farmers and ranchers with the much-needed capital.

There is no participation of any other lending institution or bank in providing the loan funds to the borrower.

  1. Joint Financing Loan

What happens in a joint financing loan is that FSA allows the farmers or ranchers to borrow up to 50 percent of the purchase price or value of the property. The remaining fund balance may be provided by a commercial lender with or without FSA guarantee. This allows farmers and ranchers to access and even greater capital.

  1. Down Payment Loan

This third one is a special type of Direct Farm Ownership Loan. This is available for new farmers and ranchers, and those applicants who are women and those belonging to a minority.

This loan finances part of the cost of the purchase of small, family-sized ranches or farms.

Unlike the other direct farm ownership loan types where 100 percent financing is possible, the down payment loan requires borrowers to shell out 5 percent of the property’s purchase price.

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How Can You Qualify for a Direct Farm Ownership Loan:

The USDA FSA identifies three main eligibility requirements for a farmer to be qualified for such loan:

  1. The General eligibility requirements must be met by the loan applicants:

  • The applicant(s) must exhibit ability to take legal responsibility for a loan
  • Must be the owner-operator of a family farm after the closing
  • Must be able to show proof of adequate credit history
  • Must not carry any debt forgiveness by the FSA in the past. This includes guaranteed loan loss payment
  • Must not have any Federal or State conviction related to controlled substances
  • Must not be delinquent on Federal debt at the time of closing other than IRS tax debt
  • Must meet the citizenship requirements set by the USDA FSA

Furthermore,  the applicant must have tried with no luck to obtain any other financing elsewhere.

  1.  Sufficient Farm Management Experience

It is also important for the USDA FSA that the applicants are able to show adequate managerial experience in handling a farm. This may be acquired through on the job training, education and/or general farm experience.

This gives the USDA FSA the assurance that they are lending funds to the right people.

Farmer applicants must have experience in the farm or ranch operations for a minimum of three years out of the ten years before submitting an application. Moreover, there should be substantial proof or documentation that the participation was not solely as a laborer.

It should be noted that this requirement is a law and is, therefore, not waivable.

  1. The farm or ranch should be an eligible farm enterprise.

This loan cannot be used to fund non-farm enterprises. Good examples of non-farm enterprises are raising and breeding of horses or dogs for show, racing, boarding and the like, tropical fish cultivation and raising of exotic birds.

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How Much Money Can You Get from a Direct Farm Ownership Loan?

For Both the Regular type and the Joint Financing Type, the maximum loan amount is $300,000. The borrower may get 100 percent financing from the USDA FSA as long as it does not go beyond the cap.

On the other hand, the Down Payment Financing type does not apply the same rules.

The maximum loan amount must not be more than 45 percent of whichever is the lesser amount of either the purchase price, the property’s appraised value or $667,000 (subject to the cap of $300,000).

Moreover, the borrower must put at least 5 percent towards the down. The balance of the down payment fund may be loaned from another lender as long as the combined financing from the FSA and the other lenders do not exceed 95 percent.

Now that you know the basics of the Direct Farm Ownership Loan, it is also wise to know about one other farm financing program from the USDA FSA. Learn more about the USDA Guaranteed Farm Loans. Click here to read more about guaranteed farm loans.

For a more comprehensive discussion of the Direct Farm Ownership Loan, you may speak with a local farm loan officer or manager. You may also visit the USDA FSA website to look up for additional information.

 

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Niche Farm Ideas that Would Help You Kick Start Your Farming Business

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Farm

Farming takes effort and patience. America banks hugely in agriculture–providing agricultural products to families here and abroad.

For aspiring farmers, sometimes it’s easy to get overwhelmed with starting a farm with no concrete plan. But it’s important to know that it’s okay to start small because farming costs a lot of money.

Good thing the USDA offers different farm loans that can help finance your plans to start your farming business. The USDA offers microloan programs to finance small, beginner or niche farm operating costs.

And if you’re thinking about focusing on growing specific products, perhaps you want to try your hand in operating a niche farm. If you’re still thinking about what to grow in your farm, here are some of the many niche farm ideas to get you started.

Mushrooms

There’s a steady demand of gourmet mushrooms for a while now. From oyster to shiitake and other kinds, mushrooms are ideal since it’s easy to grow and when sold, its returns are very promising. You can begin sourcing small grocery stores or selling them in your local farmer’s market.

Herbs

Fresh herbs are still better than those pre-packed, dry herbs because they’re usually cheaper and more organic.

You can start growing various herbs like basil, rosemary, and some others then sell them to grocery stores and restaurants. If you want you can branch out into making candles, oils, teas, and soaps with various herbs for more profit.

Ask our lenders about how to get USDA financing today.

Dairy Products

Milk, yogurt, cheese, and butter. Those are some of the dairy products you can start making. Invest in taking care of cows and make different dairy products from their milk.

Consumers nowadays are big on homemade and organic products and this might be your way to make a good profit out of it.

Honey

Beekeeping and honey production is one of the most interesting niche farm ideas out there. You can make a profit out of honey and you can open up your bee farm for educational tours.

The very good thing about honey is that it’s not only made to be used in food but it can also be a cosmetic ingredient. Since there are a lot of consumers who fancy making DIY cosmetics, you can sell honey in small quantities for that purpose.

Fruit Farm

There’s a lot you can do with fruits other than just selling them. You can make jam, dried fruit snacks, cosmetic products and even sell seeds for those who want to grow their own small farms.

Among other niche farm ideas, operating a fruit farm is an option where you can make a lot of products. And like bee farms, you can also open your farm for educational tours and even hold classes for those who want to make different products as well.

Bed and Breakfast

Along with your farmland, you can utilize extra space into something that can help you make a profit, too. If you have a barn, you can turn it into a small bed and breakfast for those who need to get away from their busy lives for a while.

Adding a small bed and breakfast can help you earn extra profit other than from your farming operations. It’s a nice plus to add in services like an immersion experience to help attract more customers.

Learn more about different USDA loans here.

Youth Loans: Financing Options for the Young Farmers of America

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Farming

A lot of aspiring young farmers all over the country want to have the opportunity to start and operate their own income-producing farming projects. Thanks to the USDA’s Farm Service Agency (FSA), that can be made possible through their youth loans.

This is the perfect avenue that helps young farmers to build their skills for the future and to prepare themselves to become competent farmers in the country.

What is it all about?

Youth loans are farm financing options for young individuals in order to support their modest sized income-producing projects.

These programs should aim to educate, prepare, and develop the skills of a young and aspiring farmer.

This loan provides financing for up to $5,000 to cover the borrower’s operating expenses. Youth loan borrowers should be at least 10 years old to qualify. The oldest that can qualify should be 20 years old.

The projects that can be financed should be in participation in approved agricultural clubs and organizations.

One of these organizations is the Future Farmers of America (FFA). They are an intracurricular student organization for individuals who are interested in leadership and agriculture.

Another example is the 4-H club. They are a community that aims to empower young people through skills that makes them responsible leaders in the future.

Other than that, projects that are in participation with tribal youth groups and similar agricultural youth organizations are also allowed.

Interested in getting a farm loan? Ask our lenders.

Who can qualify?

In order to qualify for youth loans, there are certain eligibility requirements that an applicant should meet.

First, the applicant should comply with the general eligibility requirements from the FSA. Second, the applicant should live in a rural areas, city or town with has a population of 50,000 or below.

Lastly, the applicant should conduct an income-producing farming project of modest size. The project should be in a supervised program of work.

How can it be of use?

There are more than a few ways to use the funding for youth loans. First, it should cover the borrower’s income-producing agricultural projects.

Specifically, the money can be used to by livestock, seed, supplies, and equipment. Other than that, it can also cover rent costs and repair costs. Also, it can cover operating expenses for the project.

Are the specific requirements for it?

During application, the applicant must be able to provide a detailed plan for the project as well as its projected budget.

The completed plans should be signed by both the project advisor and the parent or guardian together with the application.

While applicants have to be responsible for repaying the loan, a letter of recommendation is also needed from the project advisor in order to verify that he/she will be the loan applicant’s sponsor.

The project advisor would have to have correct training as well as experience to supervise the project and would have to be available to help whenever needed.

Consent from the parents or legal guardian is also needed for applicants between 10 and 20 years old upon closing.

More information can be obtained from your local USDA service center or through the FSA’s official website. You can also consult USDA-approved lenders regarding more specific matters about their youth loans.

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Farming Basics: A Beginner’s Guide to Starting a Small Farm

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Farming

Starting a small farm sounds exciting for an aspiring farmer who is dreaming of operating one of his own. But it’s no secret that starting a farm is no easy task. It takes patience and perseverance to maintain one.

For a beginner, starting a small farm can be a little overwhelming. That’s why it’s important to go through the process one step at a time.

If you’re an aspiring farmer planning to start a farm for his own, then it pays to cover the basics first before jumping into making major actions.

Here are the things you need to know about starting a small farm.

Defining small farms

According to the United States Department of Agriculture or USDA, a small farm is a farm that grows and sells less than $250,00.

In California alone, about 86% of all farms are categorized as small farms. It just goes to show that small-scale farming also contributes very well to the agriculture industry.

Small farms aren’t strictly based on acreage and profit. Farmers who maintain farms that are outside the mainstream agriculture are also considered small farms.

Some of them are hobby farms, niche farms, urban farms, and some others. Conveniently, there are specific financing options that serve these special farm types.

Interested? Get matched with our trusted lenders.

Create a plan

Now that you’ve established what small farms are all about, you’re now ready for the next step. Creating a business plan for your farm is something you shouldn’t wait out.

Before you go and apply for farm financing or scoping for arable land as your farm, you need to strategically plan out what you should do and what you should prepare from here on out.

Determine what you want to grow in your farm. You’re going to have to be specific about this since it helps you create a feasible projected budget and would help you when you get a loan to finance your farm.

Other than that, you can turn to get advice from farming experts or seasoned farmers to guide you as you move forward. For farm financing, you can consult the USDA to seek options for a farm loan or give you a breakdown on what to prepare in order to qualify.

Find the right loan

There are several options for small farmers. Thanks to the USDA’s Farm Service Agency (FSA), many aspiring farmers are one step closer to achieving their farm goals.

First, they offer microloans. These are loans that support beginner farmers and ranchers to get financial assistance during their start-up years.

The Direct Farm Ownership Microloans can be used to cover down payment costs as well as repairs and improvements for your farm, service buildings and farm dwellings.

On the other hand, Direct Farm Operating Microloans can be used to cover essential tools, equipment, and other acceptable operating costs.

Other than microloans, there are also specific financing options for a targeted audience. For example, there are Youth Loans that serves as an answer to the FSA’s goal to encourage the young and aspiring farmers to start building their dream of starting and operating their own farms.

There are also targeted farming loans for the minority as well as women farmers and ranchers. Thanks to this initiative, it opens up equal possibilities and opportunities for all.

Talk to our lenders about USDA loans.

New Farmer? Start a Vibrant Farming Life Here

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Farm

The history of farming and agriculture in the United States is very vibrant. Back in the olden days, it was the primary livelihood in the country. More than 90 percent of the population as involved in agriculture.

Farming became the fuel that drove America to progress. The population growth boomed and gave way to the opening of more and more new farms.

The history of farming and agriculture continues to unfold up to this day. New farmers pitch in and continue to make the agriculture industry flourish.

Is Farming Slowly Dying?

In the advent of globalization, modernization, and technological advancement, most of us think that the younger generation will less likely to take interest in farming.

This statement can be true. According to npr.org, the average age of an American farming is 58.3. This upward trend has been steady for the last 30 years. These are fewer and fewer individuals willing to get their hands dirty cultivating the land.

While this is a depressing reality, America’s heartland has not died out completely.

Young people in some places in the United States are still choosing to practice farming. What is better is that in these places the trend is reversing.

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The Move to Go Green

There is also a movement that is becoming widely accepted faster. Americans are becoming more and more conscious about the food they eat. People are starting to ditch nonnutritious, cheap, processed food.

It the desire to have healthier, high-quality food, hyper-local farming is becoming increasingly popular.

Many Americans now see vast rooftops and small backyards as perfect stops to begin urban farms. Crops that are commonly produced on huge acres of land can now be grown on tiny plots of soil right on the roof deck.

These people have a different view on why they are micro-farming. It is not meant to feed a huge population or to get big profit from it. It is their way to become self-sustaining and to eat healthier.

This means that traditional farming is still very important in feeding the entire nation. The food demand is still exceeding the supply.

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Are You a New Farmer? Get a Jumpstart with Farming Loans

Being a farmer is a noble and rewarding career. Millennials should begin to see the huge opportunity agriculture presents as a career. Which is why the United States Department of Agriculture (USDA) aims to provide support to qualified farmers, new and old, to building new farms or continue their operations.

A new farmer can find a vibrant and happy life on a farm. The USDA provides access to tools and resources that can help you begin a farm. There are also special programs designed to assist women, young people, and seniors who are venturing into agriculture. These opportunities create a platform for them to grow, learn and find the much-needed financing for their farms.

The USDA Farm Service Agency has different farm loans to help farmers who cannot obtain commercial financing. These loans can be directly funded by FSA or guaranteed by them.

The beauty of these loans is it can be used for a variety of farming needs, from covering operating expenses, buying or developing land, purchasing seeds, livestock and equipment and enforcing conservation plans.

For more information about farm loans and other financing programs of the USDA, you can also visit their website. You can also get connected with a USDA-approved lender to help you get started.

It is a beautiful and rewarding farming life waiting for you out there. Go ahead, begin farming for the future.

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